Íslandsbanki hf. has today sold 6 month commercial paper. The total issuance in the series cannot exceed ISK 1.5bn in nominal terms. The auction was structured so that bidders submitted bids at predetermined rate (price), at a simple rate of 5.20% (price: 97.4385). Bids for ISK 340m were accepted. Prior to the auction the total outstanding commercial paper amounted to ISK 4.64bn. The commercial paper was sold to a broad group of investors. Trading is expected to commence on 29 December 2014 on Nasdaq Iceland. For further information: * Investor Relations - Guðbjörg Birna Björnsdóttir, ir@islandsbanki.is and tel: +354 440 4752. * Media Relations - Guðný Helga Herbertsdóttir, pr@islandsbanki.is and tel: +354 844 3678. [HUG#1880368]